SapuraOMV to sell assets off Peninsular Malaysia for $9 million

SapuraOMV, formed through a deal between Malaysia’s Sapura Upstream and Austria’s OMV, has agreed to sell its entire interests in producing assets located offshore Peninsular Malaysia to Jadestone Energy.

East Piatu platform located on the PM 329 license; Source: SapuraOMV

Sapura OMV said on Friday that the assets would be sold by its subsidiary Sapura OMV Upstream PM Inc. The assets in question are the PM323, PM329, PM318, and AAKBNLP production sharing contracts.

According to the company, the agreed purchase price is $9 million, subject to closing adjustments. There are also contingent payments of up to $6 million dependent on certain oil price criteria being met. The effective date of the transaction is 1 January 2021.

Source: OMV

SapuraOMV’s average year-to-date net entitlement production of the PM Assets is around 6,000 barrels of oil equivalent per day. SapuraOMV is currently producing at 37 thousand barrels of oil equivalent per day from its entire Malaysia operation.

The closing of the transaction is subject to regulatory approval from Petronas and preemption rights by the joint venture partner in the assets – Petronas Carigali Sdn. Bhd.

SapuraOMV chairman, Tan Sri Dato’ Seri Shahril Shamsuddin, said: “We are placing these assets in the good and capable hands of Jadestone, who specialises in optimising mature oil fields.

As we embrace the energy transition, this divestment will consolidate SapuraOMV’s position to focus on our discovered resources off the coast of Sarawak and exploration opportunities in Western Australia.

This is in line with our growth strategy in becoming one of the leading independent operators in this region with Malaysia remaining our core region as we undertake several major gas development projects and continue to increase our resource base”.

In related news, Jadestone is continuing its efforts to acquire OMV’s stake in the Maari field offshore New Zealand.

Namely, Jadestone entered into an agreement with OMV for the acquisition of a 69 per cent operated working interest in the Maari asset back in November 2019.

Since then the transaction has been delayed several times but in March 2021 Jadestone stated that it was still on course to close the buy in the first half of the year.